I am the president and CEO of NorTech, an organization that strengthens Northeast Ohio's economic vitality by accelerating the pace of innovation for businesses and research institutions in the region's emerging industries. We use our industry expertise to foster a collaborative innovation environment that attracts capital, creates jobs and has a long-term, economic impact.
I previously worked as an investment banker on Wall Street, where I raised capital for energy and technology companies and advised them on mergers and acquisitions. My investment background collided with policy and economic development when I became the Deputy Secretary of Pennsylvania's Technology Investment Office. In this role I developed a strong passion for transforming economies through technology and innovation.
I frequently speak about innovation, manufacturing and leadership and serve on boards and advisory councils that address how U.S. businesses can collaborate, compete, grow and succeed.

How Regions Can Access Their Full Energy Potential

Advanced energy development and deployment is supporting new industries throughout the country and serves as a valuable source of jobs and competitive differentiation. Given this reality, it becomes increasingly important for regions to implement strategies that harness the full potential of their advanced energy industries.

So, what are some strategies that help a region access its full advanced energy potential?

I addressed this question with some of my peers last week during a panel discussion at the International Economic Development Council’s Spring Conference in Ann Harbor. We talked about how to identify supply chain and cluster opportunities as well as steps economic developers can take to help businesses enter the clean tech market.

We began with a discussion on whether or not advanced energy is an appropriate focus for all regions. My view is that we do not want to discourage advanced energy development anywhere but that we need to be mindful of what conditions must exist for such efforts to be successful. Basically, you need to build on your strengths, the companies, research and workforce assets that already exist in the region.

A thriving advanced energy cluster should consist of a diverse set of companies in the value chain, including materials suppliers, equipment manufacturers, research institutions, service providers and component manufacturers. Value chain support in the form of government, media, associations, foundations and economic development organizations is also critical to the success of a region’s advanced energy industry.

Advanced energy development and deployment can be particularly impactful in manufacturing-based regions like Northeast Ohio because we know how to make things. Introducing manufacturers to innovative, new technologies can open all kinds of doors.

“In this emerging market of advanced energy technologies, it isn’t just the quality of the concept that determines the winners and losers. It is the ability to efficiently demonstrate the technology at production scale,” says Jay Schabel, CEO of Akron-based RES Polyflow, which has developed technology that produces high-quality crude oil from end-of-life plastic and rubber waste.

Schabel says his company works with equipment production partners within a 30-mile radius, who are able to experience an operational enhancement opportunity one minute and implement a solution within three hours.

“That is the power of a mature and diverse industrial cluster,” he says, “and a key game changer that gives our customers confidence that the RES Polyflow team will deliver on what we promise.”

Economic developers can help integrate the value chain and facilitate connections with associated stakeholders. But if all they do is make connections, chances are their efforts will not reap many benefits.

Economic developers can also help identify which advanced energy sectors have the most potential in a particular region. NorTech, for example, has developed a roadmapping methodology for regions to define and operationalize their strategic directions. In Northeast Ohio, the roadmaps identified five sectors with regional strengths and opportunities: energy efficiency, energy storage, fuel cells, smart grid and waste/biomass to energy. We have identified $50 billion in market opportunities and the potential for 9,560 jobs in these sectors by 2020.

The point is you can deliver targeted services only after you have identified your regional strengths.

The other important component of successfully accessing a region’s advanced energy potential is a spirit of collaboration. A strong economic ecosystem thrives on it.

Economic developers can maximize their collective impact when they align their strategies and unique services. One organization might have strong manufacturing expertise, for instance, while another can provide access to funding. Yet another might be able to provide industry-specific market development or commercialization services. Whatever the individual strengths of organizations in a particular region, why not figure out how to coordinate these unique services for the good of the region? The success of such collaboration requires that process and access are easy for companies and other critical partners.

At the same time, collaboration needs to be encouraged within the value chain. In my experience, this rarely happens by itself. While many entrepreneurs might be interested in partnerships, they simply might not know who else is out there. Cluster development provides the framework for addressing this problem. It targets the entire value chain from fundamental research to final production and recognizes the contributions of associated stakeholders to the success of the cluster. It encourages interactions and synergies that lead to regional growth, drives productivity and innovation, and gives companies ease of access to skilled employees, specialized infrastructure, technological knowledge and capital.

Lastly, I believe economic developers are most effective when they get specific and understand the market opportunities. You can best accelerate the commercialization of new technologies when you bring industry expertise to services such as building cluster-based project teams, developing and executing detailed go-to-market strategies, and identifying and accessing industry relevant project funding.

Much of the work that we do is really about effecting transformational change. That means the process needs to be well thought out and managed. When you target more specific industries and strategies, the process must also be disciplined, inclusive and transparent. Many efforts struggle not due to their validity but because participants do not realize that process is important in these efforts.

Of course there is no single set of solutions. At NorTech, we have learned that our engagement with clients and our services are a “living process.” We are continually adapting. What does not change, however, is our focus on collaboration and delivering comprehensive, industry-specific services within the cluster.

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Our roadmapping methodology, called InSeven by NorTech®, can be applied to any region and industry. It is a consensus-based process for developing industry-driven roadmaps designed to position a region to capture significant economic growth within seven years. Each roadmap articulates a shared vision based on the region’s ability to leverage existing assets, defines cluster services that will promote cluster growth, and forecasts potential job growth over a seven-year period. We do offer our roadmapping model to regional groups seeking an organized, strategic and aggressive approach toward accelerating job growth in their region. For more information, please contact Jeff Brancato at 216-363-6878 or jbrancato@nortech.org.